When winter weather is bad in the northern part of the United States, real estate brokers in Florida are cheering. This is because the snow and icy wind is driving more people south, which positively impacts the state's residential real estate market. In particular, cold weather typically motivates pre-retirees and wealthy buyers to visit the Sunshine State more frequently or to remain in the state longer. When snowbirds spend more time in Florida, this results in more viewing of real estate and, in turn, more sales.
Real estate sales in Miami remained flat during the first six months of this year, compared with 2013. However, the average prices of homes increased 10 percent. This winter season is expected to remain strong, with many brokers already getting many emails and calls about home showings.
Florida last winter saw an increase of between 40 percent and 60 percent in buyers from New York. Visitors often realize that the state may offer them a better quality of life due to its enviable weather, or they begin to explore the prospect of having a lovely waterfront property or a bigger house. Florida also offers lower taxes, which is appealing to retirees.
With more people in the colder parts of the United States beginning to show more interest in Florida, it may be a beneficial time for Florida homeowners to market their properties for a profit. Likewise, those interested in buying a property such as a condo in the state may be wise to take advantage of rising inventories, which are sending prices downward. Understanding real estate law may help people who wish to engage in a residential real estate transaction to achieve their desired outcomes.
Source: CNBC, "Florida brokers prepare for rich, cold snowbirds", Robert Frank, Nov. 21, 2014